Do now! 10/19/15 What do you already know about the Great Depression? –Think back to what you might have learned in elementary school. 

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Presentation transcript:

Do now! 10/19/15 What do you already know about the Great Depression? –Think back to what you might have learned in elementary school. 

World Wide Depression flow map Table of contents: World Wide Depression flow map These notes are slightly different. Instead of writing, you will try to put the squares in the place as we go through slides. You will need scissors and glue. Notice the cause and effect relationships.

After WWI After the war, most countries in the world began to prosper. Americans enjoyed a time called “the Roaring Twenties” and people felt good about the economy. They believed they had a chance to do well, but, in 1929, the good times ended.

Stock Market Crash In the fall of 1929, the U.S. experienced a stock market crash. The values of stocks (shares of ownership) people held in companies began to drop quickly.

Falling Stock Prices Stockholders realized that they were in danger of losing everything they owned. They began to sell their stocks as fast as they could. Since there were more sellers than buyers, the prices continued to fall.

Businesses Affected Businesses found they could no longer sell their goods because people had less money to spend.

Loss of Jobs As a result, businesses and farmers could not pay their debts and many had to close their doors. This meant workers lost their jobs.

Panic! These events happened so quickly that a panic occurred. People tried to get to their banks to get their money, and they tried to sell their stocks for any amount they could get.

Effect of Panic! Panic selling caused the economy of the U.S. to come to a halt. Farmers who could not get money to pay their loans lost their farms and businesses closed.

Effects that cause World Depression Businesses around the world traded with the U.S. When the U.S. stopped buying goods, it hurt businesses in other countries. When U.S. banks closed, banks in other countries were hurt, too.

Other Countries Affected Stockholders in other countries began to sell their stocks for low prices. They could not sell their stocks in American companies for any price.

Worldwide Economic Depression What followed was called a worldwide economic depression. As businesses and factories closed one by one, buying and selling almost stopped.

Check Notes!

Watch the Video on the Great Depression http://safeshare.tv/w/zXiNfGSCTr   1. How did the Great Depression have an effect on individual people in the U.S.? Can you give an example from the video? 2. How di d the Depression have an effect people in other countries? Give an example. 3. Reflection: Do you think the Great Depression was avoidable? Why or why not?